On June 30,2025 , Steven Garcia Company issued $3,660,000.00 face value of 13%,20-year bonds at...
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On June 30,2025 , Steven Garcia Company issued $3,660,000.00 face value of 13%,20-year bonds at $3.935,340.00, a yieid of 12%. Garcia uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. Clickhere to view factor tables. (a) Prepare the journal entries to record the following transactions, (Round answer to 2 decimal ploces, es. 38,548.25. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are outomatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) 1. The issuance of the bonds on June 30,2025 . 2. The payment of interest and the amortization of the premium on December 31,2025 . 3. The payment of interest and the amortization of the premium on June 30,2026. 4. The payment of interest and the amortization of the premium on December 31,2026 . No. Date Account Titles and Explanation Debit 1 2. 3. 4
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